CHAPTER 7 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
7.1. C ONCLUSIONS
The aim of this study was to explore the implications of globalization on marketing strategy with respect to Zimbabwe’s clothing and textile sector and the main question was: “What sustainable competitive strategies can Zimbabwean clothing and textile companies employ to mitigate the impact of globalization on the sector?” The current study therefore sought to close the gap between the general understating of globalization and the crafting of appropriate marketing strategies to assist businesses combat the impact of globalization. In this regard, the study thus makes the following conclusions around the five hypotheses.
7.1.1. Main Findings
Of the five hypotheses formulated, three were confirmed through Structural Equation Modelling using Stata. The three hypothesis were all supported at the 5% level of significance. Conclusions drawn from each hypothesis are detailed hereunder:
Hypothesis 1: The use of a standardized approach to marketing positively influence the sustainable existence of a company in the face of globalization.
Literature supports the notion that finding a balanced product strategy between the two options of standardization and adaptation somewhat depends on the type of industry that the company is operating
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in. Based on the support from the reviewed literature coupled with the results obtained in this research, it can be concluded that the rigid dichotomy between total product standardization and total adaptation of the international marketing strategies of companies in the clothing and textile sector is not feasible. Both strategies must be applied depending on circumstances. This is consistent with the glocal strategy reviewed by the study. For companies in the clothing and textile sector, the challenge is to employ marketing strategies which recognize the central role played by both standardization and adaptation.
When the objective is to achieve cost leadership, a standardized marketing strategy must be used and when individuality becomes the key factor, adaptation must be applied. Though not positively confirmed by the Structural Equation Model, support from inferential statistics and qualitative analysis confirm the central role of standardization in creating a global marketing strategy. The study thus concludes that the use of a standardized approach to marketing positively influences the sustainable existence
H 2: Successful marketing strategy planning and implementation positively influence the degree of internal coordination of activities in view of global competition.
The interview results confirmed the central role of coordination in pursuance of operational sustainability in the age of globalization. Many company executives highlighted the importance of coordination among departments and staff within the organizations. The above sentiments are well supported by the results from the quantitative data analysis conducted where coordination of marketing was associated with high productivity and staff morale. However, further analysis of the relationship between the construct and its measurements confirmed that no internal relationship existed. Therefore, the study cannot confidently confirm the validity of coordination as a marketing strategy designed to mitigate companies from the effects of globalization. This is despite overwhelming evidence from the qualitative results and some inferential statistics.
Hypothesis 3: The degree of collaboration among competing companies positively influence the success of the company’s marketing strategies in the context of globalization.
Coordination is broadly defined as a management strategy which calls for the synchronization of internal work process so as to achieve organizational objectives (Patriotta et al., 2013). Coordination is thus considered as being able to improve company efficiency through cost reduction and thus produce the desired organizational outcomes. In the same vein, it became evident from the current study that while companies need to compete with others; they also need to cooperate through alliances and integrative strategies so as to remain sustainable. Such strategies are ideal in the highly dynamic global market place where strength in numbers matter for cost reduction through economies of scale leading to improved company competitiveness as reflected by the research results. The research now concludes that successful
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marketing strategies in the context of globalization are directly related to the degree of collaboration among competing companies.
H 4: The extent to which modern technologies are used by a company as part of its overall marketing strategy positively influence its success in view of global market competition.
Evidence from the path coefficients show strong convergent support for the effect of technology on the ability of a company to sustain itself in the face of globalization. Technology is one of the key drivers of globalization and as such, must be embraced by all organizations in the clothing and textile sector. The conclusion is that indeed the extent to which modern technologies are used by a company as part of its overall marketing strategy determines its success in view of global market competition. This assertion is made with a 95% level of confidence.
Hypothesis 5: The existence of enabling national policies positively influence the sustainable implementation of marketing strategies in the clothing textile industry.
It was proposed that in order to make marketing strategy work in the global market place, domestic governments must play a major role. The major role of the State is to regulate the industry through the creation of an enabling business environment where all companies irrespective of size and ownership can operate freely. The facilitation of social dialogue is thus a key role to be played by the State. Previous studies note that one of the key reasons for success in Madagascar’s clothing and textile sector was because of a number of tax incentives and regulatory frameworks instituted by their government.
Therefore, the success of the firms in that country cannot be attributed to marketing strategy alone without mentioning the role of policy. The implications are that, without the positive intervention of the State, marketing strategies alone will not be effective. Due to globalization, the functions and role of the State have been transformed substantially. The general configuration of its responsibilities has changed and this has introduced important modifications in the policy arena. When policy opens up and becomes friendly to business, massive reductions in levels of poverty are recorded. The policy implication of the study and the findings thereof is that the nation, and more importantly the manufacturing sub sector could bring about wholesome multiplier effects on the economy as the nation and manufacturing sector could be better positioned to benefit from the gains of globalization if policies and programmes are properly channeled towards addressing the perennial problems plaguing the nation. When government’s policies and institutions are more in tune with strategies of the private sector and multinational enterprises, business will thrive.
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